If you want to venture into the real property, there are several rules about 1031 exchange that you need to know. When you have a question either about real estate investment or the 1031 exchange, it is required of you to consult with a tax professional. You do not have to make mistakes here because a mistake will mean a major loss on your side. The reason why the 1031 rules are important is that they help the investors to know how to carry out their investment in the best way. It is important that you gain the knowledge about these rules for you to do well in this field. The following are some of the things you need to know about the 1031 exchange code.
The first information that is essential for you to know is that there have to be at least two properties for exchange. Another important thing is that you can never use your house as a property of exchange. To ensure that you are able to go through the legal process that is needed of you with ease, make sure that you have a reputable real estate attorney by your side. The other option that you have is to find a professional intermediary who will ensure that the irreducible minimums are met.
You also need to know that there is the 45-day rule. What you need to know about this rule is that you only got 45 days to since the day of classification to see the property that you need to buy. All these rules needs you to be a person who best adheres to rules as they are very strict. There is the need to make sure that you use these days to your advantage and get to see the property that your money will buy for you. This means that you do not have to be on the rush in selling , taking the money or even owning your new property. A lot of caution is required if you want to be indeed successful.
Another crucial rule is the one hundred and eighty day rule. It is needed that you sell and buy your new property completely within these days. The other thing that you need to know is that these days will at no time be stretched due to your changing needs. A lot of discipline is needed of the investors so that they see that they meet this rule. There are those who think that it is an exceptional if the 180th day fall on Sunday but nothing is added. You need to know that nothing will change no matter it falls in.